COMBINED savings of £12.6 million over ten years will be made possible thanks to a deal to share the provision of a range of services between councils in North East Lincolnshire and North Lincolnshire.
The moves follows a successful bid for £1.9 million from the Government's Transformation Challenge Award Fund.
The fund has been set up by the Department of Communities and Local Government to support the upfront costs of local councils working in partnership to make changes to their business practices and redesign service delivery.
It will see both councils joining up their HR, legal, finance and IT functions to create a "hub" of back office services.
The funding will be used to align, match and future-proof IT systems and policies. As well as improve resilience and create units of excellence in the professional areas of IT, HR, finance and legal across both councils.
Councillor Chris Shaw, leader of North East Lincolnshire Council, said: "By working smarter and sharing more services, we're making savings of £30,000 each and every day.
"We're working more closely with North Lincolnshire Council, as well as other public, voluntary and private sector organisations, to deliver services more efficiently.
"This money will help us and our neighbours in North Lincolnshire save more than £12 million over the next ten years."
Councillor Liz Redfern, leader of North Lincolnshire Council, added: "It is fantastic news. This funding means we can continue to prioritise our front-line services and ensure our customers continue to receive the very best possible services.
"We are already working in partnership with North East Lincolnshire Council to share a range of services, including local taxation and benefits, museum services, procurement and insurance services. We have seen some great results already from this partnership working. The new shared services will further strengthen our partnership."